Dynamic Authentication System and Methods for Use with Legacy Terminals

1. A computer readable medium on a mobile device having non-transitory computer readable code with instructions for: reading traditional mag stripe data from a memory of the mobile device; updating a dynamic authentication value stored in the memory of the mobile device; assembling, in the mobile device, the mag stripe data, dynamic authentication value, and an indication of chip capability into a data package; activating a mag stripe emulation antenna of the mobile device; modulating, by the mobile device, a signal for the mag stripe emulation antenna with the data package; storing, in the memory of the mobile device, additional information regarding a transaction with the terminal; pulling the additional information from the memory of the mobile device; and composing, in the mobile device, a message with the additional information; and sending the message from a telecommunications antenna of the mobile device over a telecommunications network.

2. The computer readable medium of claim 1 further comprising non-transitory computer readable code with instructions for: reading at the mobile device a received challenge from an issuer over a telecommunications network for additional information; pulling the additional information from the memory of the mobile device; and composing in the mobile device a response to the received challenge with the additional information.

3. The computer readable medium of claim 1 wherein the indication of chip capability comprises a service code beginning with a number other than 1 or 2.

4. The computer readable medium of claim 1 wherein the dynamic authentication value comprises a dynamic card verification value.

5. The computer readable medium of claim 1 wherein the dynamic authentication value comprises an application transaction counter.

6. The computer readable medium of claim 1 further comprising non-transitory computer readable code with instructions for: reading a received wireless initiation message from a contactless terminal: in response to the received wireless initiation message, de-activating the mag stripe emulation antenna; retrieving chip data from memory; assembling a response message to the contactless terminal with the chip data; and sending the response message to an NFC antenna.

7. The computer readable medium of claim 1 wherein the mobile device is a phone.

8. The computer readable medium of claim 1 further comprising instructions for: storing the additional information in a secure memory element.

9. The computer readable medium of claim 8 further comprising instructions for dynamically generating the additional data in the secure element.

10. The computer readable medium embedded on a mobile device of claim 1 further comprising instructions for storing the additional information in a mobile wallet in the memory of the mobile device.

11. The computer readable medium embedded on a mobile device of claim 1 wherein the additional information includes data used to identify a mobile phone number of the mobile device.

12. A method for operating a mobile device comprising: reading traditional mag stripe data from a memory of the mobile device; updating a dynamic authentication value; providing, from the mobile device, an indication of chip capability; assembling the mag stripe data, dynamic authentication value, and indication of chip capability into a data package; activating a mag stripe emulation antenna of the mobile device; and modulating, by the mobile device, a signal for the mag stripe emulation antenna with the data package; storing, in the memory of the mobile device, additional information regarding a transaction with the terminal; pulling the additional information from the memory of the mobile device; and composing, in the mobile device, a message with the additional information; and sending the message from a telecommunications antenna of the mobile device over a telecommunications network.

13. The method of claim 12 further comprising: reading a received challenge from an issuer over a telecommunications network for additional information; pulling the additional information from memory; and composing a response to the received challenge with the additional information.

14. The method of claim 12 wherein the indication of chip capability comprises a service code beginning with a number other than 1 or 2.

15. The method of claim 12 wherein the dynamic authentication value comprises a dynamic card verification value.

16. The method of claim 12 wherein the dynamic authentication value comprises an application transaction counter.

17. The method of claim 12 further comprising: reading a received wireless initiation message from a contactless terminal; in response to the received wireless initiation message, de-activating the mag stripe emulation antenna; retrieving chip data from memory; assembling a response message to the contactless terminal with the chip data; and sending the response message to an NFC antenna.

18. The method of claim 12 further comprising: reading, at an issuer computer, an authorization request with mag stripe data from a merchant terminal; determining that an originator of the mag stripe data has chip card capability from other than a service code beginning with a 2; accessing a user record corresponding to the mag stripe data; calculating a dynamic authentication value from the user record; and comparing the calculated dynamic authentication value with a field in the mag stripe data.

19. The method of claim 18 further comprising: assembling a challenge using data from the user record; sending the challenge to the phone identified in the user record for the originator of the mag stripe data over a telecommunications network; receiving a response; comparing the response to a correct response associated with the user record; and sending an authorization message to the merchant terminal.

20. A method for operating a mobile device comprising: reading traditional mag stripe data from a memory of the mobile device; updating a dynamic authentication value, wherein the dynamic authentication value is one of a dynamic card verification value and an application transaction counter; providing, from the mobile device, an indication of chip capability; assembling, in the mobile device, the mag stripe data, dynamic authentication value, and indication of chip capability into a data package; activating a mag stripe emulation antenna of the mobile device; modulating, by the mobile device, a signal for the mag stripe emulation antenna with the data package; reading a received wireless initiation message from a contactless terminal: in response to the received wireless initiation message, de-activating the mag stripe emulation antenna; retrieving chip data from the memory of the mobile device; assembling, in the mobile device, a response message to the contactless terminal with the chip data; and sending the response message to an NFC antenna of the mobile device.